Turkey increases tariffs on some US goods

Turkey said Wednesday it is increasing tariffs on imports of certain U.S. products, including rice, cars, alcohol and coal - escalating a feud with the United States that has helped trigger a currency crisis .

The Turkish government said tariffs on American cars will be doubled to 120 percent while those on alcoholic drinks will be hiked by the same rate to 140 percent. Overall, the duties will amount to $533 million, a relatively small sum that is unlikely to hurt U.S. companies much and appears meant instead to make a political point.

"The United States is an important trading partner, but it is not our only partner. We have other partners and alternative markets," Trade Minister Ruhsar Pekcan said.

The lira -- which lost just under a quarter of its value on Friday and Monday -- however continued to claw back some ground on financial markets, rallying around five percent against the dollar.

The lira's fall had raised fears Turkey was on the verge of a fully-fledged economic crisis, especially in its banking system, that could spill over into Europe and other markets.

The United States doubled tariffs on Turkish steel and aluminium last week, which contributed to a tumble in the Turkish lira.

The White House on Wednesday condemned Turkey's doubling of tariffs on U.S. imports in response to Washington's moves on imports of Turkish goods.

"The tariffs from Turkey are certainly regrettable and a step in the wrong direction. The tariffs that the United States placed on Turkey were out of national security interest. Theirs are out of retaliation," White House spokeswoman Sarah Sanders told reporters.